Sunday, June 3, 2012

ATT Chief: Expect Sharply Higher Data Usage, Wireless Firm Mergers

Cecilia Kang, who writes the Washington Post's technology blog, contributed an interesting post in this morning's online edition. The item featured comments from AT&T chief executive Randall Stephenson on the state of the wireless business.

One assertion Stephenson made caught my eye: "data usage will increase 75 percent every year for the next five years." That's an incredible statistic. That claim suggests the demands on bandwidth will be profound, and even hints at a looming bandwidth availability crisis. One way corporations settle these supply and demand issues is to raise prices, with tiered pricing being a rather obvious approach.

The financial price of bandwidth usage continues to unfold, generally into increasingly higher ranges. While the "haves" won't care about higher rates, the "have-nots" certainly will. Institutions are likely to "pass along" increased costs to their end users. If you're attending a school, working in a hospital, or rely on mobile devices for business, that's not good news at all.

Think of this situation as a storm slowly moving toward your region. It doesn't come today, and it might not come tomorrow, but it will come. While one can hope the storm will not be a strong one, I'm not optimistic about that notion, especially if Mitt "let the markets operate freely" Romney becomes the 45th president of the United States.

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